211 So. 3d 216
Fla. Dist. Ct. App.2017Background
- In 2007 a lender (first mortgagee) filed a foreclosure and recorded a notice of lis pendens against Jallali’s property; the lender named the homeowners’ association (Knightsbridge Village HOA) as a defendant.
- The HOA’s Declaration of Covenants was recorded before the mortgage and before the lender’s lis pendens; the Declaration provided for assessment liens that relate back to the Declaration’s recording.
- In 2011 the HOA recorded a claim of lien for unpaid assessments and in 2012 sued Jallali to foreclose that lien, obtaining a default final judgment (affirmed on a prior appeal).
- The lender’s successor later obtained a final judgment in its mortgage foreclosure. After that, Jallali moved under Fla. R. Civ. P. 1.540(b)(4) to vacate the HOA’s 2012 foreclosure judgment, arguing the HOA’s action was barred by section 48.23 because the lender’s lis pendens was recorded earlier.
- The trial court denied Jallali’s motion; the Fourth District affirmed, distinguishing U.S. Bank Nat’l Ass’n v. Quadomain Condominium Ass’n and holding the HOA’s recorded Declaration was a prior recorded interest that precluded application of section 48.23’s bar to enforcement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a first mortgagee’s recorded lis pendens bars an HOA from foreclosing its subsequent claim-of-lien action | Jallali: Quadomain and §48.23 bar enforcement of liens unrecorded when lis pendens was filed; HOA’s 2012 foreclosure was void for lack of jurisdiction | HOA: Declaration of Covenants was a recorded interest before the lis pendens; liens under the Declaration relate back to its recording, so §48.23 does not bar HOA action against owner (except as to mortgage priority) | The court held the HOA could foreclose the lien against the homeowner; the recorded Declaration is a prior recorded interest and §48.23 does not bar enforcement against the owner (though HOA lien remains subordinate to the mortgage) |
| Whether Quadomain controls when the Declaration is recorded prior to lis pendens | Jallali: relies on Quadomain for exclusive jurisdiction of the mortgage action | HOA: Quadomain is distinguishable because it involved an association suing a mortgagee and did not address a prior recorded declaration | Quadomain distinguished; it does not control where a recorded declaration predated lis pendens |
| Whether the HOA’s lien relation-back and priority affect §48.23 applicability | Jallali: timing of claim-of-lien recording matters under §48.23 | HOA: Statutes (§720.3085/§718.116) and the Declaration give relation-back to the Declaration for enforcement against owners, though priority vs mortgages depends on claim-of-lien recording | Court: Relation-back via recorded Declaration makes the lien a recorded interest for §48.23 purposes; priority against mortgages is separately governed and the HOA lien is subordinate where applicable |
| Whether the HOA needed to intervene in the lender’s foreclosure proceeding | Jallali: §48.23 requires intervening in the suit creating the lis pendens to preserve an unrecorded interest | HOA: Because the Declaration was recorded prior to lis pendens and the HOA sued only the owner (not the mortgagee), intervention was not required | Court: Intervention rule of §48.23 applies only to unrecorded interests; recorded Declaration obviates the need to intervene when proceeding only against the owner |
Key Cases Cited
- U.S. Bank Nat’l Ass’n v. Quadomain Condominium Ass’n, 103 So.3d 977 (Fla. 4th DCA 2012) (held mortgage-foreclosure court had exclusive jurisdiction to adjudicate interests unrecorded when lis pendens was filed)
- Chiusolo v. Kennedy, 614 So.2d 491 (Fla. 1993) (explaining purposes of lis pendens: notice to third parties and protection from intervening liens)
- Bessemer v. Gersten, 381 So.2d 1344 (Fla. 1980) (recognizing contractual liens arising from purchase subject to recorded declarations)
- Fischer v. Fischer, 873 So.2d 534 (Fla. 4th DCA 2004) (discussing lis pendens purposes and protections)